Interest Rate

Processing Fee

Loan amount

Tenure

Borrow up to 4 years of gross salary to salaried individuals or 4 years' gross annual income to individuals engaged in business or to self-employed persons.

A selective loan upto 5 years' gross salary/ income also permitted.

Borrow up to Rs. 15 Lacs for repairs and renovations.

Repay your loan in EMIs ranging up to 30 years long or till the borrower attain the age of 70 years, whichever is earlier.

In case of takeover of liability by other banks / HFIs, no prepayment charges will be levied in respect of housing loan availed at floating rates.

In the case of salaried individuals/businessmen/self-employed persons, the income of the family may be taken into account, subject to documentary evidence, for the purpose of computing the quantum of eligible amount of loan.

But in case of 2nd Housing loan, income of only spouse can be clubbed for this purpose.

Eligibility for Personal Loan

Salaried individuals confirmed in the service with a minimum service of 3 years.

Individuals engaged in business / professionals and self-employed persons. Such applicants should have been in the business/profession for a minimum period of 3 years.

A guardian on behalf of a minor, by declaring the date of Birth of the minor.

The age of the borrowers should not be more than 55 years at the time of availing the loan.

Persons above the age of 55 years are also eligible subject to certain stipulations.

Cons

Canara Bank Home Loan is one of the leading finance companies with a myriad of options when it comes to loans. Amongst its rich product offerings of loans, Home Financing solutions really stands out. These home loans are available to varied customer categories, promising competitive interest rates along with a wide range of features including - 0 foreclosure cost and provision of making partial prepayments.

Canara Bank Home Loan at a glance

Annual Interest Rate

8.35%

Loan Term

Up to 25 Years

Loan Amount

Rs. 30 Lacs to upto Rs.15 Crores

Pre-Closure Charges

Up to 4% of Principal Outstanding

Features

Borrowers enjoy prepayment facilities.

Home loan amount up to Rs. 15 Crores and the borrower gets an approval in 5 minutes (depending on the case).

Borrowers are offered prepayment facility and there is also NIL foreclosure charges.

Access to online account.

Loan tenure ranges up to 20-25 years.

Borrowers enjoy flexible EMI options.

The borrowers have the provision of making part payments.

Why Choose Canara Bank?

Canara Bank is one of the diversified non-banking financial companies in India. The company offers an extensive array of loans for the customers, home financing solutions being the highlight. With the help of service delivery model, Home Loans are delivered not only quickly but without facing any hassle. Canara Bank also offers doorstep delivery services for the loan application.

Key Facts

If you are seeking Canara Bank Home Loan, then loan quantum you can avail is as high as Rs. 15 Crore. In case you are applying for a higher loan amount, your EMIs will also be higher.

Availing Canara Bank Home Loan gives you the options to choose between Fixed and Floating rate of interest as per your preferences. If you are opting for floating rate of interest, you can easily safeguard yourself from the ever-rising home loan interest rates. On the other hand, if you opt for fixed rate of interest rates, you get to lock the interest rate for a fixed time period.

If you pay off your loans before the due date, you don’t have to pay any prepayment charges (applicable only for floating rate loans).

Canara Bank Home Loan Eligibility

Salaried Individuals

If you are employed in the government sector or a reputed private company, you are eligible to apply for a home loan with Canara Bank.

Your age should be at least 21 years at the time of disbursal of the loan and a maximum age of 60 at the time of maturity of the loan.

In order to avail Canara Bank Home Loan, your monthly income should be at least Rs. 8,000.

Self-Employed

If you are Self-Employed Non-professionals (SENP) such as – Traders, Commission Agents, Contractors, etc. you can avail Canara Bank Home Loan.

Whether you are self-employed professional or self-employed non-professional, you should be filing income tax returns.

You should be above 21 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

Being a self-employed individual, it is imperative to have a co-applicant.

Your monthly Income should be at least Rs. 8,000 in order to qualify for Canara Bank Home Loan.

Documentation

Salaried

In order to avail Canara Bank Home Loan, the documents you need to submit as a Proof of Identity are – Copy of Valid Passport, Voter’s ID Card, Valid Driving License with Passport Size Photograph, and Pan Card or Aadhaar Card.

To avail Canara Bank Home Loan, you need to submit following documents as a Proof of Income – Copy of Latest 3 months’ salary slips, certificate for fixed salary, or Latest Form 16 along with Last 6 months’ bank statement or Passbook of the salary account.

In order to avail Canara Bank Home Loan, you need to submit following documents as a Proof of Residence – Copy of Latest Electricity Bill, Utility bill, piped gas bill, Telephone bill not more than 2 months old, Passport, Aadhaar card, Voter ID, or Driving License.

In addition to above-mentioned documents, you also need to submit Processing Fee Cheque.

Self-Employed

As a Proof of Income, the documents you need to submit are – Copy of Latest 3 months’ salary slip, certificate for fixed salary, or Latest Form 16 along with Last 6 months’ bank statement or Passbook of the salary account.

Having a co-applicant is mandatory in order to avail a home loan with Canara Bank. Adding one increases your loan eligibility or if in case the co-applicant is also a co-owner in the property. A co-applicant can be a spouse or father/son, mother/daughter, etc.

You will have to pay a non-refundable processing fee for your home loan application. You can pay it through a cheque.

Canara Bank Home Loan

A general home loan scheme offered by Canara Bank assists its customers to purchase an under construction / ready / resale house, construct a house on a self-owned land, purchase a plot and then construct a house thereafter. This home loan can also be used for home extension and home improvement.

The minimum loan amount you can borrow is Rs. 3 Lacs and the maximum is Rs. 1 Crore. The loan amount will depend on your joint income i.e. the income of the co-applicant will be considered as well.

You can repay you home loan over up to 30 Years tenure, where minimum loan tenure is 3 Year.

Canara Bank allows you to repay your home loan over up to 30 years tenure, where the minimum loan tenure is 3 Years.

Loan to Value Ratio

When you apply Canara Bank Home Loan, you will have to pay a certain amount known as ‘Margin Money’ to the bank. This will speak for your competency to repay the loan all by yourself. Higher the margin money you can pay, higher the loan you can apply for.

Loan Amount

Value of the Property

Margin Money

Up to Rs. 30 Lacs

90%

10%

Above Rs. 30 Lacs to Upto Rs. 75 Lacs

80%

20%

Above Rs. 75 Lacs

75%

25%

Interest Rates

As a loan borrower, you have the choice of choosing either a Floating Rate of Interest or Fixed Rate of Interest as per your convenience. The bank will charge a floating rate of interest from a borrower where interest rate will be change by the time depending on the Marginal Cost Lending Rate (MCLR) of Canara Bank. In this case, the interest rate will not fall below the MCLR rate, which is currently 8.15%.

For all those customers who have availed disbursement or received a sanction prior to March 31, 2016 they can carry on operating on base rate. Existing customers can get in touch with the bank’s customer care department, if they are interested in moving to MCLR.

The interest rate slab for Salaried is as follow –

If the borrower is availing a loan amount of up to Rs. 30 Lacs, then the borrower will be charged an interest rate of 8.35% p.a. (MCLR + 0.20%).

The borrower will be charged an interest rate of 8.65% p.a. (MCLR + 0.50%) if the home loan amount is from Rs. 30 Lacs to up to Rs. 75 Lacs.

An interest rate of 8.70% p.a. (MCLR + 0.55%) will be charged from the borrower for a loan amount of Rs. 75 Lacs to a maximum up to Rs. 1 Crore.

The interest rate charged from the salaried borrower will be 50 basis points lower than the self-employed borrower.

Processing Fee

The borrower will have to pay processing fee of up to 1% of the Loan amount subject to minimum of Rs. 10,000.

Prepayment Fee

For floating rate loans, there are no prepayment charges. Prepayment charge of 2% of outstanding principal/amount prepaid, applicable on Fixed rate loans.

Late Payment

@24 % per annum or 2% per month

Balance Transfer

You get to transfer your Home Loan to Canara Bank on the basis of your income. The eligibility for the balance transfer will be decided on the basis of the seasoning and your past track record of existing loan. You can avail 100% top up at home loan rates.

Canara Bank Home Loan

Canara Bank Home Loan lets to pay off your home loan debt faster than any other home loan. The best thing about this loan is that your 12 EMIs will be waived off without any additional cost on regular EMI payments, as 6 months will be waived off when you complete 10 years and 6 months when you complete 15 years from your first disbursement. At the time of loan disbursement, minimum loan tenure will be 20 years.

Under this scheme, you enjoy the convenience of making part payments as well. However, in order to be eligible under this scheme, it is important that your loan should be live for a minimum of 10 years from the date of first disbursal and there are possibilities that the part payments may lead to reduction in the loan term if you choose the same than EMI reduction.

As per this scheme, the maximum term is of 30 years for the salaried individuals and for self-employed individuals it is 60 or 65 years at loan maturity. You cannot club Home Loans with subvention scheme or any other scheme of the bank. You can purchase an under construction/ready/resale house, self-construction, plot plus construction. You can also use the loan amount for home extension and improvement.

Entirely depending upon the mutual income i.e. income of the co-applicant, you are allowed to borrow a minimum of Rs. 30 Lacs to a maximum of up to Rs. 15 crore or above. For loans more than Rs. 30 Lacs and up to Rs. 75 Lacs, you can avail up to 85% of the documented cost or 80% of the market value, whichever is lower. For loans above Rs. 75 lacs, LTV up to 85% of the documented cost or 75% of the market value, whichever is lower.

You can avail this scheme only under floating rate option. As far as the EMI cycle is concerned, it will remain 5th of every month. In case your income increases substantially, you are allowed to increase your EMIs as well. However, this will lead to the disqualification of your loan from the EMI waiver benefit.

In the event of part disbursement, you will need to visit your nearest Canara Bank branch along with the builder demand letter and other related documents such as – disbursement request form.

Eligibility

Your repayment track should be clean. This means there should be only 3 instances where the dues are pending for a period of 30 days and above but make sure not more than 90 days during the tenure of the loan.

The tenure at the time of disbursement should be at least 20 years.

You should be a resident of India.

To receive the benefits of the scheme, your home loan should be continue for a minimum tenure of 10 Years as calculated from the 1st disbursement.

When applying for the scheme, make sure that there’s no late payment or any other charges left to be paid. All balance should clear to avail the waiver as per the scheme.

Loan to Value Ratio

Loan Amount

Value of the Property

Margin Money

Rs. 30 Lacs to Upto Rs. 75 Lacs

80%

20%

Above Rs. 75 Lacs

75%

25%

Interest Rates

The applicable interest rates for the salaried individuals are as following –

In order to avail a loan amount of Rs. 30 Lacs, you will be charged an interest rate of 8.35% p.a. (MCLR + 0.20%).

If you are looking to avail a home loan from Rs. 30 Lacs to up to Rs. 75 Lacs, then you will be charged an interest rate of 8.65% p.a. (MCLR + 0.50%).

If you are looking to borrow Rs. 75 Lacs to a maximum of up to Rs. 15 crores, then an interest rate of 8.70% p.a. (MCLR + 0.55%) will be charged.

The interest rate charged from the salaried borrower will be 50 basis points lower than the self-employed borrower.

For all those customers who have availed disbursement or received a sanction prior to March 31, 2016 they can carry on operating on base rate. All the existing customers who are looking to move to MCLR, they get in touch with the customer care team.

Processing Fee

There is a processing fee of up to 1% of the Loan amount subject to minimum of Rs. 10,000.

Prepayment Fee

For floating rate loans, there no prepayment charges.

Late Payment

@24 % per annum or 2% per month

Canara Bank Home Loan

This particular scheme is applicable for a home loan of a minimum of Rs. 1 Lakh to a maximum of up to Rs. 30 Lacs. This scheme is exclusively offered only under ‘floating rate’ option.

For a loan amount up to Rs. 30 Lacs, you can avail up to 90% of the documented cost or the market value, whichever is lower.

Your 12 EMIs will be exempted, at no cost, on regular EMI payments as 4 EMIs will be exempted towards the end of 4th, 8th, 12th year. Loan can be part paid and there are no charges involved here as long as the loan term does not fall below 48 months i.e. 4 years and part prepayments may lead to a decrease in the loan tenure if you make a choice for the same than EMI reduction.

Optional benefit of interest subsidy benefit on qualifying under eligibility criteria of Pradhan Mantri Awas Yojana Scheme. You can use the home loans to buy an under-construction/ready/resale house. You can also use the loan for self-construction, expansion, and improving the house.

This scheme is offered exclusively under floating rate option. As per this scheme, there will be no changes in the EMI cycle i.e. 5th of every month. No deviations will be permitted. If you are eligible under Pradhan Mantri Awas Yojana scheme (optional), then you need to submit self-declaration affidavit.

For part disbursement, you will have to visit your nearest Canara Bank Loan Centre along with builder demand letter and other related documents such as disbursement request form for every disbursement request. The disbursal of the funds by the bank will depend on the stage of construction of the property.

According to Canara Bank credit norms, beneficiary can avail a longer tenure beyond 20 years under Pradhan Mantri Awas Yojana, however the subsidy will be limited to a maximum tenure of 20 years.

Balance Transfer facility

You have the provision of transferring your existing home loan to Canara Bank, pay lower monthly instalments, and enjoy significant savings. You have the provision of Income Based Balance Transfer Loans as well.

Eligibility

You should be a resident of India.

The tenure at the time of disbursement should be at least 20 years.

For the salaried individuals, the maximum tenure is 30 years and for self-employed individuals, it is 60 or 65 years at the maturity of the loan.

It is important that there is no late payment or any other due charges at your end. The waiver will be initiated once all the additional dues have been cleared.

Your repayment track should be clean. This means there should be only 3 instances where the dues are pending for a period of 30 days and above but make sure not more than 90 days during the tenure of the loan.

In order to avail waiver benefit, the loan should be live for a minimum period of 48 months from the actual date of disbursement.

Interest Rates

Interest rates for Salaried individuals are as following –

If you are eyeing to avail a loan amount of Rs. 30 Lacs, then you will be charged an interest rate of 8.35% p.a. (MCLR + 0.20%).

If you are a self-employed individual, then the interest rate will be 50 basis point more as compared to the salaried individual.

If you have availed disbursement or received an approval before March 31st, 2016, you can carry on operating on base rate. If you are an existing customer, if you want to move to MCLR, then you can get in touch with the bank’s customer care department.

There are no prepayment charges for floating rate loans. There is a processing fee of up to 1% of the loan amount subject to minimum of Rs. 10, 000.

Late Payment

@24 % per annum or 2% per month

Canara Bank Home Loan

As per this scheme, the minimum income standard varies from as low as Rs. 8,000 p.m. to Rs. 10,000 p.m. entirely depending on the location. As far as the maximum loan amount is concerned, loans up to Rs. 28 Lakh is offered for all those locations with a population of more than 10 Lakhs and up to Rs. 20 Lakhs for all those locations with a population of up to 10 Lakhs.

Home Loans can be put into use for purchasing an under-construction/ready/resale house. The loan can also be used to repair/extend, and self-construction. On making regular EMI payments, you get to enjoy waiver of 12 EMIs. In addition, your 4 EMIs will be waived off at the end of 4th, 8th, and 12th year.

You can also opt for part payment of the loan as long as the term does not fall below 4 years. In addition, avail benefits under Credit Linked Subsidy Scheme under PMAY.

For the loans up to Rs. 20 Lacs, you get to avail up to 90% of the documented cost or market value, whichever is lower. For the loans more than Rs. 20 Lacs and up to Rs. 25 Lacs, 85% of the documented cost subject to 80% of the market value. For all small spaces/properties beginning at 300 sq. ft. area, you can avail a loan.

An equitable mortgage of the property should be financed by depositing the title deeds in order to secure the loan. The loan will be disbursed in full or in appropriate instalments, considering the need of funds & the progress of the construction, straightway to the seller or builder or supplier of materials or local development, etc. You have the choice of opting for a large base of approved projects of Canara Bank across India.

Approval Time

The decision will be delivered by the bank within 30 days from the date of receipt of the application, provided the application is duly filled along with all the required documents mentioned in the checklist. The computation of 30 days will begin from the day on which all the required documents, for the apt appraisal of the application, is being provided by the borrower to the bank.

Loan to Value Ratio

Loan Amount

Value of the Property

Margin Money

Rs. 1 Lac to Upto Rs. 28 Lacs

85%

15%

Eligibility

Your repayment track should be clean. This means there should be only 3 instances where the dues are pending for a period of 30 days and above but make sure not more than 90 days during the tenure of the loan.

The repayment term should not go beyond 30 years.

Balance Transfer

Avail higher loan amount and also make significant savings on interest rates by transferring your existing home loans to Canara Bank. You get to save more by reducing your EMI and interest rates.

Interest Rates

The interest rate slab is as follows –

If you are a salaried borrower, for Vanilla variant, you will be charged an interest rate of 9.75% p.a. (MCLR + 1.60%).

If you are a self-employed borrower, for Vanilla variant, you will be charged an interest rate of 9.95% p.a. (MCLR + 1.80%).

Being a salaried borrower, for other variant, you will be charged an interest rate of 10.50% p.a. (MCLR + 2.35%).

Being a self-employed borrower, for other variant, you will be charged an interest rate of 10.50% p.a. (MCLR + 2.35%).

If you have availed disbursement or received an approval before March 31st, 2016, you can carry on operating on base rate. Being an existing customer, if you want to move to MCLR, then you can get in touch with the bank’s customer care department.

Prepayment Fee

For the floating rate loans, there is 0 prepayment charge. However, there will be 2% of the outstanding principal/amount repaid, applicable on Fixed rate loans.

Processing Fee

The processing fee for Home Loan is up to 1% of the loan amount subject to minimum of Rs.10,000.

Late Payment

@24 % per annum or 2% per month

Canara Bank Home Loan

As per this scheme, you get to avail a minimum of Rs. 10 Lacs to a maximum of Rs. 1.50 crore. These loan amounts will be available on floating rate of interest. Maximum of Rs. 1.50 crore in Tier I and Tier II cities, Rs. 50-75 lacs in Tier III cities and Rs. 50 Lakhs in other cities.

The repayment period for canara home loan is 20 years’ subject to the borrower’s age, ideally it should not exceed 65 years at loan maturity. When you successfully maintain a good repayment record for 24, 36, 60 months from the date of first disbursement to avail 1st, 2nd, and 3rd rate deduction, rest assured you will get three assured rate reductions.

You can use home loans to purchase an under-construction / ready / resale house. In addition, you can also use home loans for self-construction, plot plus construction, home extension & improvement. You don’t have to pay any charges for early closure.

If you have a part disbursement request, you will have to come to the nearest loan centre of the bank along with the builder demand letter and various other supporting documents such as – disbursement request form.

The disbursal of the funds by the bank will depend on the stage of construction of the property. You cannot acquire more than one residential property under this scheme. For the second loan, apply under Vanilla Home Product of the bank. As per this product, the EMI cycle will remain the same i.e. 10th of every month.

Eligibility

This loan is eligible for all the resident self-employed customers (both professionals and non-professionals).

Cash/credit/overdraft accounts won’t be considered under this product, only current and saving bank accounts will be accepted.

It is important that the bank account is operational for a minimum of 12 months.

Company’s current accounts, where you are a partner, will be accepted along with your personal savings bank accounts. In addition, provided that the property should not be purchased in the name of the company and the company is the guarantor to the loan.

This particular scheme cannot be clubbed with any other scheme.

Interest Rates

The interest rate slab is as follows –

You will be charged an interest rate of 9.25% p.a. (MCLR + 1.10%)

If you have availed disbursement or received an approval before March 31st, 2016, you can carry on operating on base rate. If you are an existing customer and want to move to MCLR, then you can get in touch with the bank’s customer care department.

Prepayment Fee

For the floating rate loans, there is 0 prepayment charge.

Processing Fee

The processing fee is up to 1% of the loan amount subject to minimum of Rs.10,000.

Late Payment

@24 % per annum, 2% per month

Canara Bank Home Loan

As per this scheme, you get to enjoy lucrative savings on the total interest rate payable on the home loan. If you have any surplus funds, you can use it to save on interest while still having the provision of using them whenever you want.

You can avail a home loan amount of Rs. 50 Lacs and above and it is available in Floating Interest Rates only.

For the fully disbursed case, the maximum tenure is 20 years (e.g. Ready for Possession/Resale etc.) and for the partly disbursed case, it is 22 years (Where disbursement to be released in tranches e.g. Under construction properties).

If you avail Canara Bank Home Loan, you get to enjoy the following services –

ATM Card

Phone Banking.

Cheque Book.

Internet Banking.

As per this product, the cycle for both principal repayment and interest will remain the same i.e. 10th of every month.

There is two limit reduction option available – EMI Based Reduction and Equated Principal Amortization. As per Equated Principal Amortization, the principal outstanding will reduce by an equal sum on each repayment cycle date. When you divide the total loan amount by number of instalments over the period of the loan, you will have the reduction in the principal amount.

As per EMI based reduction, the sum of the principal and interest component payable on the repayment cycle is equal throughout the loan term. Therefore, the principal component which is repayable by you on a monthly basis is according to the amortization schedule drawn at the start of the loan. The interest component, for both the limit reduction, gets calculated on the net utilized drawing power (i.e. drawing power set in the loan account minus End of Day (EoD) balance of additional funds parked). You cannot shift, between EMI based reduction to Equated Amortization reduction or vice-versa.

How it functions?

If you deposit any amount in your loan account once the loan is disbursed, it shall reduce the principal outstanding. In addition, you will only be charged interest on net principal outstanding i.e. loan amount minus any additional funds parked in the account. In case, there are any additional funds parked, you have the facility to withdraw them as per your needs.

Balance Transfer facility

As there are no prepayment charges, you can pay your home loan without making any prepayment charges. If you opt to keep some extra funds in your account, it will only help you to make the most of the benefits of prepayment along with a provision of withdrawing them whenever you wish. It is only valid on floating interest rates.

Repaying the loan

Make sure you have maintained sufficient amount of funds in your account. This will help you to repay the monthly principal and interest repayments. You even have the provision of transferring your funds electronically or deposit a cheque into your account at one of the branches of Canara Bank.

You can optimize your savings on your Home Loan account, all you need to do is to park short-term excess funds you have in this account. You should make your Home Loan account your key/operative account.

If you have maintained a balance over and above the drawing limit, then in that case, you will not be offered any interest.

If you have issued a cheque, which is due for clearance, on the repayment cycle due date, make sure you maintain a minimum balance for total repayment (both principal & interest) due and cheque amount to ensure that both the transactions get honored.

In case, there is no apt balance in loan account for the repayment, then the account will be charged penal interest @ 24% p.a. or 2% p.m.

You cannot use the ATM Card, provided to you with Home Loan account, at merchant outlets.

Disbursement

The amount of time taken by the bank for part disbursement will entirely depend on the category of your property. The bank mainly categorizes a property into APF and non-APF (Approved Project Facility). The time taken by the bank for processing will be –

Category

Time Taken

Property part of Approved Project Facility

3 Days

Property not part of Approved Project Facility

5 Days

If you want to know more about the approved projects, you can explore the website of Canara Bank under Home Loan page. In case of any clarification, you can use the bank’s phone banking number or you can also write at. You will be intimated on your registered mobile number by the bank.

If the loan is disbursed partly, then in that case the moratorium period of 24 months gets extended. During this period, you don’t have to make any payment towards principal repayment. You only have to pay the interest on the portion of the loan disbursed.

In case the construction progress is not according to the original plan, then in that case, the bank has the right to disburse a lower amount than what was request or may not disburse at all.

You can apply for a Top-Up Loan; you won’t be able to extend the advantages of to the Top-Up portion of the loan. Top-Up facility will be offered alongside your Home Loan. As far as repayment on your Top-Up Loan is concerned, it has to be regular EMI payments as under a standard Home Loan.

There is no provision of reducing or increasing the monthly limit reduction amount.

You can switch your existing Canara Bank Home Loan to only if the loan sanction amount is greater than or equal to Rs. 1 Crore.

Once your loan account is closed, you can have your property documents after 2 weeks from your nearest branch of Canara Bank.

Eligibility

You should be a resident of India.

It is important to have a co-applicant. In case you are the co-owner of the property in question, then it is important that you should be the co-applicant for the Home Loan. In case you are the only property owner, then in that case, any member of your family can become your co-applicant.

The minimum loan amount should be Rs. 50 lacs.

This particular scheme cannot be clubbed with any other scheme.

You cannot use other than Savings or Current account for Scheme.

Interest Rate

Upto 30% of original sanction amount of home loan

Same rate as Home Loan

More than 30% of original sanction amount of home loan

LAP rate applicable

Switching Interest Rates

Switching from the floating rate scheme to the fixed rate scheme and vice versa is permissible. If a fixed rate customer wants to reschedule a loan to the present fixed interest rate applicable to the new customers, the same is also permissible. The existing customers can also switch over to the new rate of interest applicable for the new customer. For all of the above changes, a nominal switching fee is applicable.

Interest Rate

Upto 30% of original sanction amount of home loan

Same rate as Home Loan

More than 30% of original sanction amount of home loan

LAP rate applicable

Canara Bank Top-Up Home Loan

Get additional finance of upto Rs. 50,00,000, where loan tenure same as the outstanding home loan tenure.

You can avail a Top-up Loan for the following requirements:

For construction of residential/commercial premises – Permitted

For personal requirement and business purposes – Permitted subject to condition as mentioned in the affidavit

You cannot avail a Top-up Loan for the following requirements:

For purchase of another residential/commercial premises – Not permitted

An undertaking cum affidavit to be collected from the borrower specifying the end use of the loan and that the loan shall not be used for any speculation, illegal activities, litigation or any other notorious activities

Eligibility

NRI/Resident Indian can avail of Top-Up Loans based on the following conditions:

The property is to be owned by an NRI only or in joint ownership (Applicable only for NRI customers)

Top-up loans can only be extended against complete residential property with no pending post disbursal documentation

For an existing Home Loan borrower, clear repayment history is important. There should not be more than 1 EMI bounce in the last one year and the same should have been cleared before the next EMI date

Existing Home Loan customers are eligible for a Top-Up Loan after six months’ clear repayment.

For a Top-Up loan with takeover of a Home Loan from other bank, one year clear repayment track will be required.

Interest Rates

The interest rate slab is as follows –

You will be charged an interest rate of 9.25% p.a. (MCLR + 1.10%)

How interest gets calculated?

Interest calculations on the account will be made on End of Day (EoD) drawing power set for your account minus any additional funds parked in the account. This will lead to savings on the home loan equivalent to the funds parked.

For e.g. You have availed of a loan of Rs. 100 Lacs and you have parked Rs. 2 lacs on an average in the loan account.

The utilized drawing limit in this case will be Rs. 100 lacs minus Rs. 2 lacs i.e. Rs. 98 Lacs. Interest payable at the end of the repayment cycle will be calculated on Rs. 98 Lacs resulting in savings on interest payable on the loan.

Customers who have availed disbursement or received a sanction prior to March 31, 2016 will continue to operate on base rate. Existing customers can get in touch with our customer care, if they wish to switch to MCLR.